Virginia Retirement System joins EQT's third infrastructure fund

Virginia Retirement System is investing €60m in the latest infrastructure fund run by Swedish private equity manager EQT.

It is the first commitment by Virginia to EQT as an infrastructure manager, but follows a number of commitments from other US pension funds.

Last December, IPE Real Estate reported that the fund had attracted investment from the Oregon Public Employees Retirement Fund and the New Jersey Division of Investment.

The investment by Virginia follows last year’s commitment to a fund managed by Global Infrastructure Partners.

It will make up part of its real assets portfolio which was valued at $8.9bn at the end of 2016. Infrastructure makes up 15% of the portfolio.

EQT, which declined to comment, is targeting €2.9bn in capital for EQT Infrastructure Fund III.

The fund will invest in existing assets and companies across transportation, logistics, environmental, telecom and social infrastructure.

EQT expects to make 12 to 14 deals, each between €50m and €300m in size.

EQT has sold eight assets and distributed €3bn in capital from its two previous infrastructure funds, producing a gross internal rate of return of 35%.

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  • QN-2380

    Asset class: Direct Infrastructure Investments.
    Asset region: OECD Countries.
    Size: EUR 75m – EUR 100m.
    Closing date: 2017-12-08.

  • QN-2381

    Asset class: US Direct Lending.
    Asset region: Northern America.
    Size: EUR 50m – EUR 100m.
    Closing date: 2017-12-08.

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